The merged entity will initially focus to advance Cyclo’s Phase 3 global TransportNPC study that is evaluating investigational Trappsol Cyclo for Niemann-Pick Disease Type C1
Cyclo Therapeutics and Applied Molecular Transport agree to merge. (Credit: Rock Staar on Unsplash)
Biotechnology company Cyclo Therapeutics has agreed to merge with US-based biopharmaceutical company Applied Molecular Transport (AMT) in an all-stock transaction.
According to the terms of the merger agreement, each AMT share will be exchanged for around 0.174 shares of Cyclo Therapeutics.
On a fully diluted basis, the biopharmaceutical firm anticipates issuing AMT stockholders 7.624 million shares of Cyclo Therapeutics ordinary stock, or around 25% of the combined business.
Cyclo Therapeutics CEO N Scott Fine said: “Importantly, this transaction bolsters our cash position to complete our Phase 3 study and support operations through the regulatory submission process, assuming a successful outcome in our pivotal study.
“We remain dedicated to bringing our NPC global pivotal programme, which is on track to complete enrolment by the end of 2023, across the finish line towards approval. We will be working in earnest to close this exciting and strategic transaction.”
Upon closing of the merger, the combined company will operate under the name Cyclo Therapeutics.
The merged entity will initially focus on advancing Cyclo’s Phase 3 global TransportNPC study that is evaluating investigational Trappsol Cyclo for Niemann-Pick Disease Type C1. The drug is being assessed intravenously in a Phase 2b trial of early Alzheimer’s disease.
The combined company will have its corporate headquarters in Gainesville, Florida, US. It will be run by the current Cyclo Therapeutics management team.
AMT CEO Shawn Cross said: “Following an extensive and thorough strategic review process, we view this merger with Cyclo Therapeutics as the best path forward for AMT shareholders given the promise and potential of its late-stage programme in NPC1.
“We are encouraged by the progress shown in this important programme and Cyclo Therapeutics’ long-standing support of NPC1 patients and their families in its compassionate use programme.”
The merger has been authorised by the boards of directors of both organisations and is currently anticipated to close in the fourth quarter of this year.
The deal is subject to the fulfilment or waiver of customary conditions, including the required approval by the stockholders of both companies.